The conversion of a regional mall into a mixed-use center can transform a property, but such projects are not for the faint of heart, warns Jerry Hoffman, head of Hoffman Strategy Group and an economist, in the second of two papers on mixed-use development. To be successful, such developments demand “extensive market intelligence, strategic planning and patient capital.”

Neither are there universal formulas that can be applied to these projects — each must be tailored to the unique demands and characteristics of its market. Hoffman discusses the local circumstances and different outcomes involving Forest City’s Ballston Quarter, Arlington, Va.; University Mall, South Burlington, Vt.; and two Atlanta projects — Simon’s Phipps Plaza Buckhead, and Ponce City Market.

Mixed-use development has accelerated in the U.S. in recent years as owners look to revamp faltering retail properties. But while the rewards are great, so can be the challenges, he says.

“The conversion from a regional mall to a mixed-use center that enhances the local market and community is complex,” he writes. “This is one reason why conversions are not happening as quickly as the closing of anchor department stores. To make strategic moves requires time—not to mention agile coordination of multiple processes.”